REE-3043 Lecture Notes - Lecture 1: Land Economics
21 Sep 2017
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The neoclassical tradition is still followed today: neoclassical economist (alfred marshall) in the late 1800s and early 1900s demonstrated that value results from the intersection of supply (cost) and demand (utility) In addition to demand and supply fundamentals, value is greatly affected the institutional arrangement imposed by government (land codes, building codes) and private groups (neighborhood covenants and restrictions) Financial economics: real estate investment and valuation decisions require market analysis and the application of advanced financial techniques developed by financial economists. The institutions: real estate values are affected by market and social institutions these include primary and secondary lending institutions, local government agencies, and a variety of real estate ownership vehicles (real estate investment trusts) Real estate in the world economy: financial assets include items such as stocks, bond, and cash. Real estate can be classified as a financial asset.
